Employee Restrictions: Types
Restrictive covenants are express terms in the contract of employment which restrict an employee’s activities for a limited period following the termination of employment. They are only enforceable if they protect a legitimate business interest and don’t go any further than is reasonably necessary to protect that interest.
Restrictive covenants include:
- A restriction on working for a competitor or setting up business in competition;
- A non-solicitation covenant preventing the former employee from poaching clients, suppliers or customers from the former employer;
- A non-dealing covenant preventing the former employee from dealing with clients, suppliers or customers of the former employer (regardless of which party approached the other);
- Non-solicitation of employees;
- Restrictions on using confidential information.
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